United ridership sinks, stock hits new low

(Crain's) -- United Airlines says the miles flown by paying passengers decreased 3.6% in June from the year-earlier month, and the number of paying customers dropped 5%.

Miles flown by paying customers fell faster than United cut capacity, which it trimmed 0.6%. As a result flights were less full in June, at 86.5% of capacity, compared with 89.1% a year earlier.

Shares in United parent UAL Corp. closed below $4 for the first time Thursday, slipping to $3.86 in a shortened trading session ahead of the July 4th holiday. The stock is down 30% in the past week as oil prices have reached new highs.

United's 3.6% drop in miles flown by paying passengers was steeper than rival American Airlines', the nation's largest carrier, which saw a 3.1% decrease in June.

Southwest Airlines Co., which continues to expand even as other carriers slash their flight schedules, said it increased traffic by paying customers 0.7% in June as it boosted capacity 5.7%.